Professional Documents
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Complainant is of legal age, married, Filipino, and residing at No. 1 Padre Burgos
Street, Barangay Poblacion, Batangas Philippines. He may be served with notices,
orders, and other legal processes of the Honorable Commission through his counsel of
record.
STATEMENT OF FACTS
2. RODRIGO DELA FLAY, twenty-eight (28) years of age, Filipino, and residing at
No. 1 Padre Burgos Street, Barangay Poblacion, Batangas Philippines;
6. He works from Monday to Saturday from eight o’ clock in the morning until five in
the afternoon.
7. He receives a minimum wage per month from November 2011 until December
2012. His latest monthly salary amounted to Eight Thousand Seven Hundred
and Ninety-Seven Pesos (P8,797.00) per month (as of 2013);
10. The complainant was a regular employee of the respondent company when he
was terminated in April 2016 having served it for more than fifteen (15) years as
of that date.
11. Complainant performed his tasks well for more than a decade, and was not
involved in any misconduct in relation to his employment.
12. In June 2014, One Corporation, Inc. issued a Memorandum to all employees
directing them to report at 7:30 AM to 5:30 PM, which the complainant complied
with for nine (9) months until March 2015. No overtime pay was given to them for
the additional hour worked, and monthly wage remained at P8,797.00, as shown
by the previous payslips.
13. Eventually, the practice of nine (9) hour work days stopped, and they resumed
the regular eight (8) hour work days. It was at this time that complainant, DELA
FLAY, noticed that the management started to treat him differently as from
before.
14. The regular practice of rotating tasks no longer applied to the complainant, as he
was advised that his duties were to be fixed to the pounding of fertilizers. He was
no longer required to do the tasks of checking and cleaning warehouses.
15. The complainant did not ask about the sudden change of his duties, continuing
to do his assigned tasks.
16. In early 2016, the Complainant and LUPITO DEL TORRO were both asked by
management if they would like to transfer to Cagayan De Oro. When asked
about the necessity of a transfer, DE MANGO replied that he was instructed by
their head office in MANILA to facilitate the transfer.
17. The following day, Complainant and DEL TORRO informed DE MANGO that
they would rather be terminated than transferred to Cagayan De Oro. Further,
they were not terminated from their respective positions, and they still reported
and was accepted to work.
18. In one incident, Complainant went out of the compound during his lunch break,
and was not able to come back to work, which resulted in his “undertime.”
19. He was confronted and warned orally about his misconduct, and advised that if
he would like to go home early, then he must inform his immediate supervisor.
STATEMENT OF ISSUES
ARGUMENTS
I.
a. has been engaged to perform activities which are usually necessary or desirable in the
usual business or trade of the employer, or
b. has rendered at least one (1) year of service, whether such service is continuous or
broken, with respect to the activity in which he is employed (Mehitabel Furniture Co., Inc.
v. NRC, 220 SCRA 602).
The determination of regular and casual employment is not affected by the fact that the
employee's regular presence in the place of work is not required, the more significant
consideration being that the work of the employee is usually necessary or desirable in the
business of the employer (Opulencia Ice Plant and Storage v. NLRC, G.R. No. 98368, 15
December 1993). The primary standard or test for determining regular employment is the
reasonable connection between the particular activity performed by the employee in rela- tion to
the usual trade or business of the employer (Tan v. Lagrama, 387 SCRA 393).
When regular employment status attaches to a casual worker It is more in keeping with
the intent and spirit of the law to rule that the status of regular employment attachés to the
casual worker on the day immediately after the end of his first year of service. To rule otherwise,
and to instead make their regularization dependent on the happening of some contingency or
the fulfillment of certain requirements, is to impose a burden on the employee which is not
sanctioned by law (Kay Products, Inc. v. C.A., G.R. No. 162427, 28 July 2005).
In order that the willful disobedience by the employee may constitute a just cause for
terminating his employment, the orders, regulations, or instructions of the employer or
representative must be:
a. reasonable and lawful;
b. sufficiently known to the employee; and
c. in connection with the duties which the employee has en- gaged to discharge.
Where an order or rule is not reasonable, in view of the terms of the contract of
employment and the general rights of the parties, a refusal to obey does not constitute a just
cause for the employee's discharge. As to what is a reasonable rule or order will depend on the
circumstances of each case. Reasonableness, however, has reference not only to the kind and
character of directions and commands, but also the manner in which they are made. The
employee's disobedience, in order to justify his dismissal under this provision, must relate to
substantial matters, not merely to trivial or unimportant matters. Furthermore, disobedience to
be consid- ered willful must be resorted to without regard to its consequences DOLE Manual;
BLTB Co. v. CA, 71 SCRA 470; Family Planning Org. of the Phil., Inc. v. NRC, G.R. No. 75907,
23 March 1992).
As a just cause for dismissal of an employee under Art. 297 of the Labor Code, willful
disobedience of the employer's lawful order requires the concurrence of two (2) elements:
a. The employee's assailed conduct must have been willful or intentional, the willfulness
being characterized by a wrongful and perverse attitude; and
b. The order violated must be based on a reasonable and lawful company rule, regulation
or policy and made known to the employee and must pertain to the duties for which he
has been engaged to discharge (Dongon v. Rapid Movers et al., G.R. No. 163341, 28
August 2013).
Generally, gross neglect means an absence of that diligence that an ordinarily prudent
man would use in his own affairs. In order to constitute a just cause for the employee's
dismissal, the neglect of duties must not only be gross but must also be habitual. Thus, a single
or isolated act of negligence does not constitute a just cause for the dismissal of the employee.
To justify the dismissal of an employee for neglect of duties, however, it does not seem
necessary that the employer show that he has incurred actual loss, damage or prejudice by
reason of the employee's conduct. It is sufficient that the gross and habitual neglect by the
employee of his duties tends to prejudice the employer's interest since it would be unreasonable
to require the employer to wait until he is materially injured before removing the cause of the
impending evil (DOLE Manual).
Habitual neglect implies repeated failure to perform one's duties for a period of time,
depending upon the circumstances. (Premiere Development Bank v. Mantal, G.R. No. 167716,
March 23, 2006).
Neglect of duty to be a ground for dismissal, the following requisites must concur:
Neglect of duty, to be a ground for dismissal, must be both gross and habitual (National
Sugar Refineries Corporation v. National Labor Relations Commission, G.R. No. 122277, 24
February 1998). Gross negligence connotes want or absence of or failure to exercise slight care
or diligence, or the entire absence of care. It evinces a thoughtless disregard of consequences
without exerting any effort to avoid them. Fraud and willful neglect of duties imply bad faith of
the employee in failing to perform his job, to the detriment of the employer and the latter's
business. Habitual neglect, on the other hand, implies repeated failure to perform one's duties
for a period of time, depending upon the circumstances (International School Manila v. ISAE,
G.R. No. 167286, 5 February 2014).
The essence of due process simply means that the employer shall afford the worker an
ample opportunity to be heard, or as applied to administrative proceedings, an opportunity to
explain one's side or an opportunity to seek a reconsideration of the actior or ruling complained
of (Stayfast Phils. Corp. v. NLRC, 218 SCRA 596; Villareal v. CA, 219 SCRA 292).
For a worker's dismissal to be considered valid, it must comply with both procedural and
substantive due process. The legality of the manner of dismissal constitutes procedural due
process, while the legality of the act of dismissal constitutes substantive due process (Quirico
Lopez v. Alturas Group of Companies and /or Marlito Uy, G.R. No. 191008, 11 April 2011).
In Kings of Kings Transport, Inc. v. Mama, G.R. No. 166208, June 29, 2007, the
Supreme Court laid down the manner by which the procedural due process can be satisfied:
(2) Hearing conducted After serving the first notice, the employer should schedule and
conduct a hearing or conference wherein the employee will be given the opportunity to:
During the hearing or conference, the employees are given the chance to defend
himself personally, with the assistance of a representative or counsel of his
choice. Moreover, this conference or hearing could be used by the parties as an
opportunity to come to an amicable settlement.
(3) Post-notice, Second written notice Notice of dismissal After determining that termination
of employment is justified, the employer shall serve the employee a written notice of
termination indicating that:
1. all circumstances involving the charge against the employee have been
considered; and
2. grounds have been established to justify the severance of his employment.
The Perez Doctrine enunciates the new guiding principle on the hearing aspect of
procedural due process. It has interpreted the term "ample opportunity to be heard" to mean:
a. "Ample opportunity to be heard" means any evidence in support of his defense, whether
in a hearing, conference or some other fair, just and reasonable way.
b. formal hearing or conference is no longer mandatory. It becomes mandatory only under
any of the following circumstances:
1. When requested by the employee in writing; or
2. When substantial evidentiary disputes exist;
3. When a company rule or practice requires it; or
4. When similar circumstances justify it.
The base figure to be used in the computation of backwages due to the employee
should include not just the basic salary, but also the regular allowances that he had been
receiving, such as the emergency living allowances and the 13th month pay mandated under
the law (Ibid.). Simply stated, computation of backwages should be based on the basic salary at
the time of the employee's dismissal plus the regular allowances that he had been receiving
(Espejo v. NLRC, G.R. No. 112678, 29 March 1996).
II.
It is well settled that backwages may be granted only when there is a finding of illegal
dismissal. (Leopard Security and Investigation Agency v. Quitoy, G.R. No. 186344, 20 February
2013: Best Wear Garments v. De Lemos, G.R. No. 191281, 5 December 2012).
Since the complainant was illegaly dismissed on April 2016, there is a total of sixty
seven (67) months from November 2021. The computation is:
Rodrigo Dela Flay is entitled to receive his unpaid premium pay on a holiday
since the he reported to work on holidays. The holidays that transpired during his
employment are as follows:
Day Day
Day
December 30 – Rizal
Day Day
Day
December 25 – Christmas
Day
December 30 – Rizal Day
2013 January 1 – New Year’s Day February 10 – Chinese
March 28 – Maundy Lunar New Year’s Day
Thursday February 25 – People
March 29 – Good Friday Power Anniversary
April 9 – Araw ng Kagitingan March 30 – Black Saturday
May 1 – Labor Day March 31 – Easter Sunday
June 12 – Independence August 21 – Ninoy Aquino
Day Day
August 8 – Eid’l Fitr October 28 – Barangay
August 26 – National Heroes Elections
Day November 1 – All Saints’
October 15 – Eid’l Adha Day
Day
December 30 – Rizal Day
2014 January 1 – New Years Day January 31 – Chinese New
April 9 – Araw ng Kagitingan Year
April 17 – Maundy Thursday February 25 – People power
April 18 – Good Friday Anniversary
May 1 – Labor April 19 – Black Saturday
June 12 – Independence April 20 – Easter Sunday
Day August 21 – Ninoy Aquino
July 29 – Eid’l Fitr Day
August 25 – National Heroes November 1 – All Saints
Day Day
October 6 – Eid’l Al – Adha November 2 – All Souls Day
November 30 – Bonifacio December 26 – Special Day
Day After Christmas
December 25 – Christmas
Day
December 30 – Rizal Day
2015 January 1 – New Years Day January 2 – Special Non
January 2- Day After New Working Holiday After the
Years Day New Year
April 2- Maundy Thursday January 15,16,17,18,19 –
April 3 – Good Friday Pope’s Visit (Public Holiday
There is a total regular holiday of 167 days. For the special holiday there is 128
days. The basic pay is 366.54166
128 (number of special holiday) x 109.96 (30% of his basic pay) = 14,075.198
Any employee who is permitted or required to work beyond eight (8) hours on ordinary
working days shall be paid an additional compensation for the overtime work in an amount
equivalent to his regular wage plus at least twenty-five percent (25%) thereof.
From June 2014 until March 2015, for the period of nine (9) months complainant did not
receive any overtime pay pursuant to the Memorandum issued to all emlpoyees. The practice of
requiring the employees to work for nine (9) hours a day. Thus an additional one (1) hour
overtime was left unpaid.
11.454426 (25% of hourly basic rate) x 9 = 103.08983 (total unpaid overtime pay)
The base figure to be used in the computation of backwages due to the employee
should include not just the basic salary, but also the regular allowances that he had been
receiving, such as the emergency living allowances and the 13th month pay mandated under
the law (Ibid.). Simply stated, computation of backwages should be based on the basic salary at
the time of the employee's dismissal plus the regular allowances that he had been receiving
(Espejo v. NLRC, G.R. No. 112678, 29 March 1996).
[15 (years of employment) + 6 (backwages for the 13th month pay)] x 8797 = 184,737
The service incentive leave pay should start a year after commencement of service, for it
is only then that the employee is entitled to such benefit (JPL Mktg. v. C.A., G.R. No. 151966, 8
July 2005).
Conversion to cash equivalent, purpose; rule on conversion The service incentive leave
is commutable to its money equivalent if not used or exhausted at the end of the year (Sec. 5,
Rule V, Book III, Rules Implementing the Labor Code) based on the salary rate at the date of
commutation.
Since the complainant rendered his service from 2001 upto 2016, for a total of sixteen
(16) years, he is entitled to 80 days service incentive leave.
366 .54 (daily basic pay) x 80 = 29,323.2 (total unpaid service incentive leave)
III.
The nature of moral damages is defined under our Civil Code. Article 2220 states that
willful injury to property may be a legal ground for awarding moral damages if the court should
find that, under the circumstances, such damages are justlydue. The same rule applies to
breaches of contract where the defendantacted fraudulently or in bad faith." In Primero v.
Intermediate Appellate Court, this court stated that damages, as defined in the Civil Code, is
recoverable in labor cases. Thus, moral damages:
. . . cannot be justified solely upon the premise (otherwise sufficient for redress under
the Labor Code) that the employer fired his employee without just cause or due process.
Additional facts must be pleaded and proven to warrant the grant of moral damages under the
Civil Code, these being, to repeat, that the act of dismissal wasattended by bad faith or fraud, or
was oppressive to labor, or done ina manner contrary to morals, good customs, or public
policy;and, of course, that social humiliation, wounded feelings, grave anxiety, etc., resulted
therefrom.
The employee is entitled to moral damages when the employer acted a) in bad faith or
fraud; b) in a manner oppressive to labor; or c) in a manner contrary to morals, good customs,
or public policy.
Bad faith "implies a conscious and intentional design to do a wrongful act for a dishonest
purpose or moral obliquity." Cathay Pacific Airways v. Spouses Vazquez established that bad
faith must be proven through clear and convincing evidence. This is because "badfaith and
fraud . . . are serious accusations that can be so conveniently and casually invoked, and that is
why they are never presumed. They amount to mere slogans or mudslinging unless
convincingly substantiated by whoever is alleging them." Here, there was clear and convincing
evidence of bad faith adduced by the responded.
In the present case, the complainant suffered from mental anguish, serious anxiety,
social humiliation and tarnish his reputation when he was illegally dismissed. The respondent is
clearly is in bad faith when complainant was supposedly transferred his work to a remote place
for him to resign from work.The respondent’s breach of its duty of good faith and fair dealing in
the manner of dismissal. The complainant should be awarded moral damages in the amount of
One Hundred Thousand Pesos (₱100,000.00) and exemplary damages also in the amount of
One Hundred Thousand Pesos (₱100,000.00)
Attorney's fees awarded in labor cases are deemed part of damages. Attorney’s fees
should be granted as soon as it is established that legal services have been rendered by the
lawyer, or if the employee is compelled to litigate in order to seek redress, or if the dismissal is
attended with bad faith.
The total claim of the complainant amounts to Php 1,210,804.4. The award of attorney’s
fee is ten percent (10%) of the total equivalent claim or 121,080.44.
IV.
In labor cases, the Court has held corporate directors and officers solidarily liable
with the corporation for the termination of employment of employees done with malice or
in bad faith (Fernandez v. Newfeld Staff Solutions, Inc., G.R. No. 201979, 10 July 2013).
Bad faith does not connote bad judgment or negligence; it imports dishonest
purpose or some moral obliquity and conscious doing of wrong; it means breach of a
known duty through some motive or interest or ill will; it partakes of the nature of fraud.
(Malayang Samahan Ng Mga Manggagawa v. Hon. Ramos, G.R. No. 113907, 20 April
2001).
To sustain such a finding, there should be evidence on record that an officer or
director acted maliciously or in bad faith in terminating the employee (Fernandez v.
Nasfeld Staff Solutions, Inc., supra).
Magno De Magno is an officer of the Only Corporation Inc. Having maliciously re-
assign the complainant for an unjust transfer, he is solidarily liable with the respondent
Only Corporation Inc.
PRAYER
NATE ALUMNO
PTR No. 234975 1/5/2021
IBP No. 989967 1/5/2021
MCLE Compliance No. 0078322
123 C.M. Recto Avenue Manila, Philippines
Alumno.nate@ue.edu.ph
0917-1214-0864
RAFAEL TAN
PTR No. 198290
IBP No. 986389
MCLE Compliance No. 0067792
1000 C.M. Recto Avenue, Manila Philippines
Tan.rafael@ue.edu.ph
0916-510-2151
VERIFICATION AND CERTIFICATION AGAINST FORUM SHOPPING
I, RODRIGO DELA FLAY of legal age, single and a resident of No. 1 Padre
Burgos Street, Barangay Poblacion, Batangas Philippines, after having been duly sworn
to in accordance with law hereby depose and say:
That I have not commenced any other case/action or proceedings involving the
same issues before this office, in the Supreme Court, the Court of Appeals, or the
different division thereof, or any tribunal agency.
That if I should thereafter learn that a similar action or proceedings has been filed
or is pending before this office, Supreme Court, the Court of Appeals, or the different
division thereof, or any tribunal agency. I undertake to promptly inform the said
offices/agencies of that fact within five (5) days therefrom.
RAFAEL TAN
NOTARY PUBLIC, MANILA CITY
1000 C.M. Recto Avenue, Manila Philippines
Until December 2021
PTR No. 198290
IBP No. 986389
MCLE Compliance No. 0067792